Question

Chovita Marbles purchases $1,500 in raw material each month to support sales of $2,500 that occur in the following month. In addition, Chovita pays wages, rent, and taxes that total $700 each month. What is Chovita's total monthly cash disbursements?

a. $300

b. $4,700

c. $700

d. $1,000

e. $2,200

Answer

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